Investors Must Prepare for Major Market Shift

by blogger1
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on Feb 07 in BestTransactionFunding
There is a major market shift coming that could end the majority of real estate investor’s businesses as fast as the last bubble bursting if they aren’t prepared for it...

Regardless of what the banks and government are doing or proposing to stem the flow of foreclosures a seller’s market is on the way and if the wave hasn’t hit your area yet, it could be a tsunami sized slap to your cash flow.

Real estate investors have enjoyed a free ride for the last few years with endless deals at ridiculous discounts to choose from. Many have never experienced a bidding war or know what it is like to be told not to make an offer unless it is full price. However, this is already happening in many areas of the country. There aren’t weeks or even days to think over whether you should put a property under contract, demands for bigger deposits and Proof of Funds are increasing and even trying to get a return call about an available property is going to be pretty difficult. If you business model isn’t structured right you could be in for a big wake up call and a stall in your cash flow.

Real estate investors need to be building better relationships with wholesalers and agents, be improving their negotiation skills, be prepared for tighter spreads as sellers push up their asking prices and focusing on attracting more buyers.

The one big difference between now and the last boom is the lack of availability of financing. There are lots of cash buyers out there to flip to but with sellers becoming tougher o the window to close and hard money a lot harder to get than ever before transactional funding is going to be crucial to your success. Start preparing for the shift now...
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